Joy Global Inc. (NYSE: JOY) reported second-quarter 2016 results before markets opened Thursday. The mining equipment maker posted adjusted diluted earnings per share (EPS) from continuing operations of $0.09 on revenues of $602 million. In the same period a year ago, Joy Global reported EPS of $0.64 from continuing operations on revenue of $810.5 million. Second-quarter results also compare to the Thomson Reuters consensus estimates for break-even EPS and $607.72 million in revenue.
On a GAAP basis, Joy posted a quarterly loss of $0.16 per share, compared with earnings of $0.57 per share in the second quarter of 2015.
Second-quarter adjusted results exclude $35 million in restructuring charges, and the company said that it expects additional restructuring charges of $30 million to $40 million in the rest of the fiscal year.
CEO Ted Doheny said:
Despite ongoing challenges in commodity markets, our bookings and financial results in the second quarter were better than expected. While markets overall remain subdued, we were able to secure growth-related original equipment bookings in a few markets during the quarter. In addition, a seasonal up-tick in service sales and continued cost reduction initiatives helped drive sequentially improved earnings and continued solid cash generation in the quarter.
Bookings of underground mining equipment fell 17%, from $438 million a year ago to $362 million, and surface mining equipment sales fell 1% from $344 million to $340 million. Service bookings are down 14% and OEM bookings are up 12%. Backlog at the end of the quarter totaled $976 million, up from $873 million at the beginning of the fiscal year.
Joy Global now expects fiscal 2016 revenues at the lower end of its previously announced range of $2.4 billion to $2.6 billion. The company maintained its adjusted EPS range of $0.10 to $0.50. The consensus fiscal year estimates call for revenues of $2.47 billion and EPS of $0.18 before Thursday’s report.
In its market outlook the company said it expects copper prices to remain around current levels for the rest of 2016, a larger-than-anticipated decline in U.S. coal production, a rebalancing market for steel and iron ore prices in a range of $45 to $50 per metric ton.
Joy Global’s shares closed down 1.9% on Wednesday, at $16.70 in a 52-week range of $8.35 to $41.00. Shares were inactive in Thursday’s premarket session. Thomson Reuters had a consensus analyst price target of around $17.64 before the results were announced.
Sponsored: Find a Qualified Financial Advisor
Finding a qualified financial advisor doesn’t have to be hard. SmartAsset’s free tool matches you with up to 3 fiduciary financial advisors in your area in 5 minutes. Each advisor has been vetted by SmartAsset and is held to a fiduciary standard to act in your best interests. If you’re ready to be matched with local advisors that can help you achieve your financial goals, get started now.